"It takes one hour to run from the bottom to the roof of the Empire State Building in New York, but only 8.8 seconds to jump from the roof."
When we run from the bottom of the Empire State Building to the roof, we need to overcome the influence of gravity and climb about 443 meters. "This is a long process that requires continuous energy expenditure. The speed of running up the stairs may be relatively slow because it is necessary to overcome gravity and the resistance of the stairs."
Running up the stairs is relatively slow because you need to overcome gravity and the resistance of the stairs, but according to the mechanical formula, "when an object falls from a height under the action of gravity, its speed will gradually increase, so jumping from a height will be very fast. This process involves acceleration and the law of motion under the action of gravity."
“There are also invisible mechanics in the investment market, where the speed of decline is often twice the speed of rise, but this mechanical effect is a "double buff" in Ethfi.
“Predicting systemic risks in advance”
ether.fi's liquidity pool allows anyone with 2 ETH to join the staking and become a B-NFT holder. The 2 ETH staked by the B-NFT holder will be combined with the 30 ETH in the liquidity pool in the auction. Through this process, the generated T-NFT will be transferred to ether.fi's liquidity pool, which ensures that the minted eETH tokens have sufficient staked ETH and accrued rewards as support.
Some people may think of holding multiple B-NFTs to obtain higher returns. This is indeed an option. However, it also means that you need to bear more risk responsibilities. B-NFT holders are responsible for securely managing validator keys and exiting nodes when necessary based on the request of T-NFT holders. Although this can bring higher returns, it also requires more careful management and operation.
The uniqueness of delegated staking is that it allows stakers to fully control their own validator keys, which are very important because they determine when the validator node exits.
In ether.fi, stakers will use T-NFT and B-NFT to represent their claims to the pledged ETH. T-NFT can be converted into ETH or eETH for liquidation, but B-NFT is bound to the person who keeps the validator key. B-NFT represents ownership of the validator key, and the B-NFT holder is responsible for exiting the node when necessary.
Because B-NFT holders take on additional risk, their returns are 50% higher than those of T-NFT and eETH holders.
If everyone wants to become a B-NFT accumulator, there will be a waiting process. When there is enough ETH in the liquidity pool, the person in front will get the opportunity. If someone does not respond within a day, the next candidate will seize the opportunity. In the future, an auction mechanism may be introduced to handle this process.
But when the demand for exchanging eETH for ETH suddenly increases, the liquidity pool may not have enough ETH because a lot of ETH is locked in the validator nodes.
These nodes are related to the T-NFT in the liquidity pool. If many people want to exchange eETH for ETH, but there is not enough ETH in the liquidity pool, this may cause difficulties in exchange.
This leads to liquidity problems, which is similar to a large number of customers withdrawing money from a traditional bank. If a large number of customers withdraw funds in a short period of time (such as a bank run), the bank may not have sufficient cash reserves to meet the demand, leading to a liquidity crisis.
If a large number of pledgers suddenly withdraw and exchange their collateral for ETH, the ETH in the liquidity pool will decrease rapidly, the market will fluctuate violently, and the value of ETHFi will be affected. The market panic caused by the fluctuations and the spread of emotions will lead to a large number of collateral exchanges.
Therefore, its properties determine that when the market performs well, it will rise rapidly during an uptrend, and when the market performs poorly, it will fall at a rate more than twice the rate of rise. Like the beautiful explosion of fireworks, it is fleeting, but it will quickly create an upward momentum in the early stage of the market's improvement.
To solve this problem, if the ETH in the liquidity pool is less than a certain amount, the earliest T-NFT will trigger an exit request transaction. This request will record a timestamp and start a timer to send an event notification to the B-NFT holder corresponding to the T-NFT. The B-NFT holder needs to hear this notification and respond.
Users can sign up for email notifications in the ether.fi web app or use the ether.fi Telegram bot.
If the timer expires and the validator has not exited, B-NFT holders will be gradually cut. Node operators will receive rewards when the validator exits, incentivizing them to help exit the validator. When the validator exits, T-NFT and B-NFT will be destroyed, and the extracted ETH will be deposited into the liquidity pool.
In the Ethereum network, smart contracts run on the execution layer, while the data on the validator nodes is stored in the consensus layer. The two layers cannot communicate directly, so ether.fi's smart contracts cannot directly obtain the status and balance of the validator nodes.
ether.fi has launched a hash consensus oracle network and is working with other teams to ensure that the network is strong and decentralized enough to securely transmit data from validator nodes to ether.fi's smart contracts.
Oracle reporting is required to recalculate the eETH token balance benchmark. This report is performed at least once a day, recording snapshots of the consensus layer and execution layer, and scanning all validator nodes registered in the ether.fi protocol smart contract. Then, based on the snapshot, the total amount of ETH staked and accumulated by the validator nodes is calculated and recorded on the chain.
If Ethereum adds the necessary infrastructure (e.g. EIP-4788, EIP-7002), ether.fi will no longer need to rely on the Oracle network.
It provides a service similar to traditional banking, but differs in many ways. Like traditional banks, Ether.fi allows users to stake assets (such as Ether) on the platform to receive corresponding rewards or interest.
This staking activity is similar to a bank deposit, but unlike a bank, staking on the Ether.fi platform is based on blockchain technology, which has higher security and transparency.
In addition, Ether.fi also provides liquid staking tokens, which are similar to deposit certificates or deposit receipts issued by traditional banks, representing the user’s rights and interests in staking activities.
These tokens can be traded on the platform at any time, increasing flexibility for users.
Unlike traditional banks, the Ether.fi platform is decentralized, meaning that there is no central authority controlling users’ assets. In traditional banks, users’ funds are managed and regulated by the banks, but on the Ether.fi platform, users directly control their assets and private keys, which increases the security of assets and user control.
The Ether.fi platform also provides a node service market, a decentralized feature that allows stakers and node operators to register nodes to provide infrastructure services. This market mechanism increases the flexibility and scalability of the platform and provides users with more choices.
Ether.fi has also launched a loyalty points reward program to incentivize users to participate in staking activities for a long time. This innovative reward mechanism increases user participation and encourages them to maintain continuous staking activities.
The emergence of Ether.fi provides users with a more secure, transparent and flexible financial service option.
But when the market falls, capital will flow to short Ether.Fi (ETHFI), which is driven by market sentiment and expectations.
Short selling is an investment strategy where an investor borrows an asset and immediately sells it in the hope of buying it back at a lower price in the future when the price drops, and then returning the borrowed asset to make a profit.
“This shorting could cause the ETHFI token price to fall further as selling pressure increases, creating a negative cycle”
